1- A company sends its truck every 30 days to pick up Chips from its supplier. The truck takes 2 days to make the trip and before leaving it gets the order. Chips are consumed at an average rate of 5 per day (with a standard deviation of 1 per day) 7 days a week, if 35 chips are currently in stock and a service level of 98% is desired, how many chips? should they be ordered? 2- The annual demand for a product is 13,000 units, the weekly demand is 250 units with a standard deviation of 40 units. The cost to place an order is $100 and the delivery time is 4 weeks. The annual cost of holding inventory is $0.65 per unit. To have a service level of 98%, what must be the reorder point? If reserve inventory is reduced by 100 units, what is the new service level probability?